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Agricultural Situation and Prospects in the Central and Eastern European

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Agricultural Situation and Prospects in the Central and Eastern European Agricultural Situation European Union and Prospects Agriculture and rural development ( Lithuania European Commission Directorate for Agriculture (DG VI) Agricultural Situation and Prospects in the Central and Eastern European Countries This report has been prepared by DG VI in close collaboration with N. Kazlauskiene in Lithuania. Assistance was given by DG II, DGIA, EUROSTAT, TAIEX, and by Prof A. Segre' of the University of Bologna. The manuscript has been prepared by Marina Mas­ trostefano. The author accepts full responsibility for any errors, which could still remain in the text. The closing date for data collection was April 1998. The revision of the English text was carried out by Eithne Me Carthy A great deal of additional information on the European Union is available on the Internet. It can be accessed through the Europa server (http://europa.eu.int). Cataloguing data can be found at the end of this publication. Luxembourg: Office for Official Publications of the European Communities, 1998 ISBN 92-828-3698-3 © European Communities, 1998 Reproduction is authorized, provided the source is acknowledged. Printed in Belgium Table of contents Introduction .........................................................................................................5 About the data•••..................................................... _ ........................................... 6 Executive Summary ...........................................................................................7 1. General economic situation ..................................................................... 12 1.1. The Lithuanian economy ........................................................................... 12 1.1.1. Political Background ....................................................................... 12 1.1.2. Macro-economic indicators .............................................................. 12 1 .2. Agriculture in the overall economy ........................................................... 14 1 .3. Agricultural economy ............................................................................... 14 2. Agricultural and rural society ................................................................. 17 2. 1 . land Use ................................................................................................. 17 2.2. Agricultural production and consumption .................................................. 17 2.2.1. Cereals ........................................................................................... 18 2.2.2. Fodder crops .................................................................................. 19 2.2.3. Potatoes balance ............................................................................. 19 2.2.4. Oilseeds and Protein Crops .............................................................. 19 2.2.5. Sugar beet and Sugar ....................................................................... 19 2.2.6. Fruit and Vegetables ........................................................................ 21 2.2.7. Livestock ....................................................................................... 21 2.2.8. Milk .............................................................................................. 21 2.2.9. Beef .............................................................................................. 22 2.2.10. Pig meat ........................................................................................ 22 2.2.11. Poultry meat ................................................................................... 22 2.3. Forestry ...................................................................................................23 2.3. Agricultural trade ..................................................................................... 24 2 .4. Farm structures and privatisation .............................................................. 25 2.5. Rural development ................................................................................... 26 2.6. Agriculture and the environment ............................................................... 27 2.7. Up- and downstream activities .................................................................. 27 2.7.1. Up-stream ...................................................................................... 27 2.7.2. Down-stream .................................................................................. 27 2.7.3. Up and Down-stream privatisation ..................................................... 28 2.7.4. Foreign Direct Investment (FDI) ....................................................... 29 3. Agricultural and rural policies ................................................................ 30 3.1 . Agricultural market policy ......................................................................... 31 3.1.1. Market prices and subsidies .............................................................. 31 3.1.2. Price Gap ....................................................................................... 32 CEC Reports - Lithuania :.. 1 3.1.3. Producers and Consumers Subsidy Equivalents ................................... 33 3.2. Trade policy .............................................................................................33 3 .2 .1. Border measures ............................................................................. 3 3 3.2.2. Trade agreements ............................................................................ 34 3.3. Structural Policy ............................................................................. 35 3.3.1. Support to lnvestment ...................................................................... 35 3.3.2. Taxation ........................................................................................ 36 3.4. Rural Development Policy ......................................................................... 37 3.5. Agri-environmental Policy ......................................................................... 37 3 .6. Veterinary and Fitosanitary legislation ...................................................... 37 4. Medium term outlook ............................................................................... 39 4. 1 . General Economic Framework .................................................................. 39 4.2. Commodity projections (2003) ................................................................. 39 4.2.1. Cereals .......................................................................................... 39 4.2.2. Sugar ............................................................................................ 40 4.2.3. Milk .............................................................................................. 41 4.2.4. Beef .............................................................................................. 4 1 4.2.5. Pig meat ........................................................................................ 41 4.2.6. Poultry meat ................................................................................... 42 GlossaryI Abbreviations .................................................................................43 Main Sources Used ..........................................................................................44 ANNEX 1: The Veterinary Sector in Lithuania ............................................ 45 ANNEX 2: Phare activity - Agricultural sector ...........................................4 9 2 c CEC Reports - Lithuania list of tables TABlE 1 MACRO ECONOMIC INDICATORS .................................................................. 13 TABlE 2 ROlE OF AGRICUlTURE IN THE ECONOMY ........................................................ 14 TABlE 3 FooD CoNSUMPTION ............................................................................... 15 TABlE 4 GROSS AGRICUlTURAl OUTPUT 1990-'96 ...................................................... 16 TABlE 5 SHARE OF PRODUCTION IN PRIVATE FARMS AND HOUSEHOlDS ................................ 17 TABlE 6 CEREAlS BAlANCE SHEET ............................................................................ 18 TABlE 7 MAIN CEREAlS PRODUCTION ....................................................................... 18 TABlE 8 PERCENTAGE STRUCTURE OF CEREAlS PRODUCTION ............................................. 18 TABlE 9 POTATOES BAlANCE SHEET .......................................................................... 19 TABlE 10 RAPESEEDS BAlANCE SHEET ....................................................................... 19 TABlE 11 PEAS AND BEANS BAlANCE SHEET .............................................................. 19 TABlE 12 SUGAR BEETS BAlANCE SHEET .................................................................... 19 TABlE 13 WHITE SUGAR BAlANCE SHEET. ..................................................................20 TABlE 14 FRUIT AND BERRIES BAlANCE SHEET .............................................................20 TABlE 15 VEGETABlES BAlANCE SHEET ...................................................................... 21 TABlE 16 MilK BAlANCE SHEET ..............................................................................21 TABlE 17 BEEF BAlANCE SHEET ............................................................................... 22 TABlE 18 PIG MEAT BAlANCE SHEET .........................................................................22 TABlE 19 POUlTRY MEAT BAlANCE SHEET ...................................................................22
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